Patriot Wealth - December 2020

Patriot Wealth - December 2020

DECEMBER 2020

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PATRIOT WEALTH

THE MOMENT I FOUND OUT WES WAS FEARLESS

My son, Wes, was born for winter sports. He’s always been an amazing athlete, but when it comes to winter sports, he has a special aptitude for staying upright and making it look easy. He grew up playing and watching hockey (and if he has his way, Noah will too!), but I didn’t first discover this knack of his when he was on the ice. It was actually when he was flying down the bunny hill when he was just 6 years old! I’ll never forget this trip. Our family was traveling with friends for a weekend of skiing just across the border from North Carolina in West Virginia. We had perfect, dry weather while traveling up to the resort, and then that first night, it snowed 12 inches on the mountain! Talk about perfect timing. I was itching to hit the slopes the next day, and I signed Wes up for ski lessons almost immediately. Since Wes was 6, I didn’t think he would be able to maneuver his tiny 18-inch skis over the snow without some guidance. While we were waiting, I decided we could get in some practice runs down the bunny hill. (For those who don’t ski or snowboard, the bunny hill is a very, very easy practice hill to help new skiers and kids get their “snow legs.”) On the top of the hill, I gave Wes a few pointers about how to stop, and without even flinching, he took off! I stood there, stunned and filled with both pride and shock that my 6-year-old son was whizzing down the bunny hill on slick skis without so much as a hint of fear. (Not much has changed, by the way.)

After his first run, Wes climbed back up the hill and went down again. And again. And again. The kid had just picked it up! So, I canceled his lessons, and we headed for more difficult hills. By the end of the day, Wes was flying down black diamond runs with me. He blew me away with his skill, and honestly, he surpassed his old man. Wes’ mom was a little more concerned than me when she found out Wes had taken off down the bunny hill on his own. She wasn’t completely sold on him continuing to ski without so much as one lesson, but after seeing just how much of a natural he was, her worry subsided to a more natural maternal level. Since that fateful day on the slopes, Wes has been making us proud on the ice playing hockey. I’ll never forget the day I realized we were raising a fearless kid — one who loved the adrenaline he found rushing down a hill or gliding across the ice backward trying to steal the puck. It’s the kind of story a dad cherishes. At that moment, Wes wasn’t just my 6-year- old son. He was a little person with his own ambitions and thoughts, zooming down the hill without any hesitation. Today, he’s a fantastic father, husband, son, and business partner to his old man. He continues to make me proud every day, especially when I think of all the times he jumped into life with no fear.

Happy holidays to you and yours!

–Rick White

These articles are designed to provide general information on the subjects covered. They are not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Patriot Wealth and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney. Investment Advisory Services is offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Patriot Wealth and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

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THAT WON’T KILL YOUR SAVINGS 3 GIFT-GIVING TIPS

Ah, the holidays. It’s a time of sweet treats, family, and giving back — and sometimes giving a little too much. When it comes to the perfect holiday gift, many people spend too much money. The average American spends nearly $1,000 on gifts during the December holidays alone!

the people who didn’t make the cut into a second list. If you still feel the need to do something for them, send homemade cookies or a handwritten note instead of purchasing something. This limits how much you actually have to spend! THINK BEYOND STORE-BOUGHT OR EXPENSIVE ITEMS. Sure, everyone wants this holiday season’s “it” item, but sometimes the best gifts don’t even come wrapped under the tree. Instead, look to your own talents as a clue to what you should give. If you’re a great crafter, create something unique for the people on your list. If you can offer the gift of time, provide a free night of babysitting for your friends with kids or an experience at the local theater. These gifts have a bonus factor: Recipients

love the gift when they open it, and they love it when they get to use it!

SET A BUDGET — AND STICK TO IT. Setting a holiday budget ensures you only spend what you can afford. It also narrows down your search. If you choose to buy your neighbor something, but they aren’t your top priority, set their budget at a lower level, like $25–$50. If you have a sibling who has had a rough year and you’d like to make their holidays a little brighter, bump their budget up. This narrows the focus of what you’re looking for so you don’t stumble into something you can’t afford. Ultimately, it’s the spirit of giving during the holidays that makes them so rewarding. With a little ingenuity, you can be generous and avoid the stress of excess debt come January.

It’s possible to cut back and make it to January without major debt. Here’s how.

CHECK YOUR LIST — TWICE! The list is going to be your secret weapon to tackling the holidays with your savings still intact. Start by writing down the name of every person you’d like to get a gift for. Now, with the exception of your immediate family members, narrow the names down to your top five — top 10 if you’re really popular. Now, place the names of

IMPORTANT LAW CHANGES YOU NEED TO KNOW

AFTER THE CONFETTI DROPS

The beginning of each year is usually very predictable. After all the celebrations, holiday treats, and midnight kisses are wrapped up, many people will begin working on their New Year’s goals and return to some sense of normalcy after the holiday rush. For many, that does not include reading up on the new laws and regulations that will go into effect on Jan 1.

than $80,251 would now be taxed in the next lowest bracket at a rate of just 12%.

SOCIAL SECURITY JUMPS Starting on Jan. 1, Social Security and Supplemental Security Income (SSI) will increase by 1.3%. While this may seem like a small jump, it’s an adjustment that’s typically made after assessing livability and current wages. The taxable maximum income will also increase to $142,800 from $137,700 after this jump, as well. These increases may seem minor, but they can have an impact on how much you are taxed in 2021 and how you budget for your retirement. It’s important to follow trends and assess what changes you may need to make in the new year to accommodate adjustments made by the government. Our team can help you with this. If you have questions about how these changes will impact your plan or if you need to make changes, give us a call today. We’ll help you ensure your plan continues to work for your goals — regardless of how the laws change.

So, we did the work for you. Below are two law changes taking effect in 2021 that you need to know about.

TAX BRACKET CHANGES This October, the IRS announced new tax brackets for 2021. Not to be confused with tax rates, which have been the same since 2018, tax brackets signal the threshold at which your income is taxed. (By contrast, rates are how much people in those brackets are taxed.) In many cases, the threshold for the bracket jumped by a few thousand dollars. For example, the tax bracket for married couples filing jointly in 2020 (taxed at 22%) was for income between $80,251— $171,050. The bracket for those filing at that same rate in 2021 is $81,051–$172,750. Those who earn less than $81,051 but more

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The holidays are supposed to be about peace, love, and goodwill toward others, but for some, the holidays are the perfect time to scam others out of their money and sense of security. To avoid becoming a victim of a scammer this holiday season, here’s what you need to know. VERIFY CHARITIES It’s the most popular time of the year for generosity, but don’t let your mission to help others get thwarted by dubious charities. Verify how a nonprofit uses its donations through Charity Navigator or the Better Business Bureau. Each group has an independent rating system designed to help donors select the organizations that best suit their personal beliefs and missions. Only give to organizations you can verify personally or through these sites. BE A SMART ONLINE SHOPPER Amazon, Etsy, and other online retailers have made it easier than ever to send your loved ones their favorite gifts, but be wary of how often you input your credit card information on the web. Closely guard this information and only add it to reputable websites. Always shop with trusted retailers and closely monitor your credit card statements throughout the holiday season. If possible, sign up to receive text or email alerts whenever your card is used. This will ensure you know when your card is used without your authorization, and you can limit the damage done when a card is stolen. 3 TIPS TO AVOID SCAMMERS THIS HOLIDAY SEASON

TAKE A BREAK

FESTIVE APPLE CIDER

If you’re cutting back on calories, skip the eggnog and buttered rum this year and fill up your mug with this delicious mulled cider!

INGREDIENTS

SAY SOMETHING There’s no need to be embarrassed. Scammers are

• 1 lemon • 1 gallon pure apple cider • 1 large orange, thinly sliced crosswise • 2 tsp whole cloves

• 2 tsp allspice berries • 1 inch fresh ginger, thinly sliced • 2 tbsp honey • 3 cinnamon sticks

professional thieves who play on the good nature of others. If you fall victim to a scam, tell the local authorities. Reporting this crime helps law enforcement better track scams and put a stop to these online thieves. You can also notify officials if you suspect only you’ve been targeted. If you’re unsure about the validity of something you receive, ask your family and friends. Usually, an outsider’s point of view can offer perspective on the situation.

1. Using a paring knife, shave the lemon peel off in curls. Reserve the curls and save the lemon for use in a different recipe. 2. In a large slow cooker, combine the lemon peel with all other ingredients. Cook on low for 3–4 hours. 3. If desired, use a sieve to strain the spices. Serve and enjoy! DIRECTIONS

You can report a scam or learn more online at the Federal Trade Commission’s website, FTC.org.

Inspired by BoulderLocavore.com

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PATRIOT WEALTH 4350 Lassiter at North Hills Ave. #330 Raleigh, NC 27609 INSIDE THIS ISSUE Rick Shares a Sweet Family Story About Wes PAGE 1 3 Fool-Proof Ways to Pay for the Holidays Without Going Broke PAGE 2 Prep for 2021 by Learning About Upcoming Law Changes PAGE 2

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Festive Apple Cider PAGE 3

3 Tips to Avoid Scammers This Holiday Season PAGE 3 The Surprising History of the Snowman PAGE 4

NOT JUST A CORN COB PIPE AND BUTTON NOSE THE SURPRISING HISTORY OF THE SNOWMAN

Building a snowman is one of the most picturesque winter activities, which is why snowmen have become a wintertime cultural icon. A snowman appeared on the very first postcards, was the subject of some of the earliest photos, and even starred in silent movies. Frosty may be a happy snowman now, but his ancestors have a much more varied — and sometimes dark — history. THE MIDDLE AGES Snowmen were a phenomenon in the Middle Ages. They were constructed with deep thought and great skill because, during a time of limited means of expression, snow was a free art supply that literally fell from the sky. These artistic feats were popular winter attractions for well-to-do couples who wanted to get their fix of temporary art. Snowmen were often created by famous artists, including 19-year-old Michelangelo who, in 1494, was commissioned by the ruler of Florence to sculpt a snowman in his mansion’s courtyard. THE MIRACLE OF 1511 In Brussels in 1511, during six weeks of subzero temperatures called the Winter of Death, the city was miraculously adorned

with hundreds of snowmen. The spectacle told stories on every street corner — some political and some demonstrating anger with the church, many too risque to speak of. For the people of Brussels, this Miracle of 1511 was a defining moment of artistic freedom. But when spring came and the snow thawed, the Belgians were left with damaging floods. THE SCHENECTADY MASSACRE Not all snowmen have an innocent history. In 1690, former Fort Schenectady in upstate New York was home to a remote Dutch settlement, which was under the constant threat of attack. Soldiers guarded the gates at all times because they were frozen open, but during a blizzard, they left a pair of snowmen to protect the gates while they sought shelter. That’s when 200 French Canadian soldiers and Native Americans approached. Naturally, they were unfazed by the snowmen and ruthlessly invaded the settlement. Building a snowman seems like a simple and charming activity, but after learning about its surprising history, you might find those piles of snow seem a little more complicated and a lot more meaningful than before.

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